Asia report: Stocks mostly higher as yen nears six-year lows

Most stock markets closed higher in Asia on Tuesday, although Chinese property plays were in the red, with the yen in particular focus as it slid against the dollar to trade near a six-year low.

In Japan, the Nikkei 225 gained 1.1% to 28,252.42, as the yen pared back some of its earlier losses to strengthen 0.23% against the dollar, last trading at JPY 123.55.

Of the major components on the benchmark index, robotics specialist Fanuc was up 0.69%, Uniqlo owner Fast Retailing added 1.87%, and tech investment giant SoftBank Group advanced 1.89%.

The broader Topix index was 0.93% firmer by the end of trading in Tokyo, closing at 1,991.66.

On the mainland, the Shanghai Composite was down 0.33% at 3,203.94, and the smaller, technology-centric Shenzhen Composite lost 0.57% to 2,084.47.

South Korea’s Kospi gained 0.42% to 2,741.07, while the Hang Seng Index in Hong Kong gained 1.12% to 21,927.63.

JD Health was among the top gainers in the special administrative region, jumping 17.88% after it announced a share buyback of up to HKD 3bn (£0.29bn) late on Monday.

Property shares in Hong Kong went against the regional trend, however, with Shimao Group down 12.5% and Sunac China sliding 17.41%.

Sunac’s losses came after it said it would enter a trading halt on 1 April, which itself came days after it confirmed its 2021 results would be delayed.

The blue-chip technology stocks were on the front foot in Seoul, with Samsung Electronics up 0.72% and SK Hynix closing 1.69% higher.

“A sense of positivity returned to financial markets as the prospects of more ceasefire talks between Russia and Ukraine soothed investor jitters,” said FXTM senior research analyst Lukman Otunuga.

“Asian shares opened higher on Tuesday morning, tracking the positive overnight cues from Wall Street as market players cast aside fears of rising interest rates to focus on geopolitical developments.

“In the currency arena, the yen hijacked our attention by weakening to levels not seen in seven years, as the Bank of Japan intervened in bond markets to cap yields.”

Otunuga noted the tumbling in oil prices earlier in the session as lockdowns in China led to demand concerns, while gold “stood little chance” against an appreciating dollar and rising Treasury yields.

The widely-watched US 10-year Treasury yield hit 2.5% overnight.

“On the geopolitical front, Ukraine’s president has said he is willing to discuss becoming a neutral country as part of a peace deal with Russia,” Otunuga added.

“Should a ceasefire agreement become reality, this could boost global sentiment further and revive investor confidence, sending equity markets higher.”

Oil prices were mixed as the region went to bed, having fallen through much of the Asian session, with ICE Brent crude futures last up 0.42% at $112.98 per barrel, and West Texas Intermediate down 0.06% on NYMEX at $105.90.

In Australia, the S&P/ASX 200 managed gains of 0.7% to 7,464.30, as fresh data out of Canberra showed retail sales beating expectations in February.

Sales jumped by 1.8% to reach a seasonally-adjusted AUD 33.1bn (£18.97bn) for the month, beating expectations for a 1% increase pencilled in by economists polled by Reuters.

Major retailers were in the green in Sydney, with Coles Group up 0.96%, Wesfarmers ahead 1.83%, and Woolworths Group rising 0.93%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.08% at 11,919.67, with medical technology maker Fisher & Paykel Healthcare breaking a five-session losing streak to close up 1.4%.

The down under dollars were mixed against the greenback, with the Aussie last 0.1% stronger at AUD 1.3335, while the Kiwi weakened 0.03% to NZD 1.4506.